DES MOINES, Iowa (AP) — A financially struggling central Iowa rural water supplier has reached a debt repayment agreement with the U.S. Department of Agriculture and bondholders to keep it operating while it restructures debt.
The Xenia Rural Water District, based in Bouton, distributes water to 9,400 customers in 11 counties west of Des Moines. It has $45 million of debt owed to the USDA and private bondholders.
The USDA says in a statement Tuesday that it continues oversight of the water district, its operations and its finances after working for 3 ½ years to help Xenia improve operations.
A recent debt repayment agreement between Xenia and bondholders cleared the way for USDA Rural Development to move forward with a debt restructuring plan.
The district's board approved a 7 percent rate increase in December.